Buying a property in Slovenia

Description:

Slovenia is a small country with friendly people and you will have a reason to feel great here. The country is well known for its natural beauty and hospitality. In less than two hours you can change your skis for a sailing boat, you can climb over numerous walls in the mountains or you can admire the beauty of caves and that can give you the idea of how diverse Slovenia really is.

It is also important to know that Slovenia is a state governed by the rule of law and that buying real estate in Slovenia is the safest investment.

Before Slovenia joined the EU, foreigners trying to buy had to go through a long and complicated process of obtaining permission from the Ministry of Justice which could take as long as 5 months. Now all that has been swept away and the real estate market is free of legal restrictions for EU citizens.

 

But before you even think of buying, really get to know the area you want to live in and think about how you are going to get there and the transport and other infrastructure once you are there. Consider how much time you want to spend renovating a picturesque property in the countryside or whether you would rather buy a fitted out apartment and be out enjoying the wonderful scenery and lifestyle! Factor in how you would deal with an emergency especially when you are out of the country - would you be better off having a management company looking out for you, as well as delivering services such as heating the property, doing the laundry and taking delivery of post and packages.

 

Once you have made your choice, ask your lawyer to submit an offer in euros based on what you can really afford taking into account all the extras such as tax, translation costs, bank costs, currency transfer costs and of course, furnishing and equipment. Generally speaking, fittings in Slovenia are of a comparable cost to the UK but labour (carpenters, electricians, etc) is relatively cheaper.If the offer is accepted, you must make an application for an EMSO number (a number that Slovene citizens are given at birth) and a tax number and perform land searches. Land registry searches in Slovenia are a modern wonder and can usually be provided within 2 working days. Where else in the world can they be done at such speed?

VAT
When selling a newly constructed or renovated residential apartment or building, 8.5 per cent VAT is levied on the property, otherwise 20 per cent VAT is charged for business premise. Be sure to check whether it's included in the purchase price.

 

Exit Costs

- 2% property transfer tax

- capital gain tax: 20% if you sell the property within 5 years from buying. Capital gain tax is lowered for 5% every 5 years eg. if you sell between 6 and 10 years after buying tax is 15%, 11-15 years after the tax is 10%

- exempt from capital gain tax get those who bought a property before January 1st 2002 or had a permanent residency in the property for at least 3 years

 

Now you can talk to your bank about the different possibilities of moving money across to Slovenia including using forward contracts in euros. Transfers into Slovenia are becoming easier now that it is part of the EU.Translate all documents including the contract, the details from the Land Registry, any management contracts and all insurance policies.You will need to open a bank account in Slovenia for all those standing orders (utilities, management charges, cable TV and so on)! A good relationship with a Slovene bank will make all this very simple.

 

And finally, once you and your lawyer are satisfied sign the contract in both languages and break open the champagne and the fun can begin.